Pyramid Schemes: your experiences

[Bcat]

Have you ever been or do you know someone who has ever been involved in a pyramid scheme? Or as they more commonly call themselves today 'Multi Level Marketing' companies or 'mlm's'

For those of you who may not be sure what they are, here is a video link explaining it:
https://www.youtube.com/watch?v=VVUUbEw_Pm8

TLDW: Basically, they are companies which mainly make their money not from selling their product to customers, but to their distributors. Distributors are also typically rewarded higher for recruiting new distributors rather than selling the product.


People who get involved in companies like this almost ALWAYS end up losing money. Some of them even end up in debt. They usually prey on younger women, typically new mothers with the promise of earning money from home. But there are a wide variety of companies like these and anybody can fall prey to them.

The products they sell are also typically very poor quality (almost as if the companies make them difficult to sell on purpose)


Some common examples of companies like this are mary kay, amway, herbalife, doterra, young living, lipsense, scentsy, lularoe, itworks, rodan and fields, avon, arbonne, and jamberry (which is on thin ice and on the edge of shutting down. google it if you're interested. it's a mess)



Have you ever been involved in a company like this or know someone who has? What was your experience? Did you lose money? Ever been harassed by someone on social media to try and join one? Have you bought products from a distributor? What was the quality like?
Just... what do you think of these?

 

[DJStarstryker]

Never been involved with one. For the average person they will only make you lose money. I honestly don't think they should be allowed to exist.

 

[Midoriya]

I’ve never been a part of one, but someone in my family has, but they got out of it.

 

[Croconaw]

I’ve never been involved in one, and I do not want to ever be involved in one. Even if I am the person making the money, it is all a total scam.

 

[Katelyn]

My cousin sells LuLaRoe and I have to say I think they're one of the better ones. More than half of my close is LuLaRoe and it's all great quality. While it is a bit more expensive than a lot of stores, I feel good buying from people who actually need it rather than a larger corporation. She pretty much buys what she thinks she'll need at wholesale price and whatever she makes afterwards is hers. she can't choose the patterns or colors though, she just orders sizes and styles of clothing. She actually does pretty well and makes a decent amount of money but it also helps when you know a lot of people who are interested in the product. Also, she doesn't necessarily need the money either since she's a stay at home mom and her husband makes more than enough to support them so it's pretty much just to have a little extra spending money. It may work out differently if you were to depend on it for income.

 

[Bcat]

My cousin sells LuLaRoe and I have to say I think they're one of the better ones. More than half of my close is LuLaRoe and it's all great quality. While it is a bit more expensive than a lot of stores, I feel good buying from people who actually need it rather than a larger corporation. She pretty much buys what she thinks she'll need at wholesale price and whatever she makes afterwards is hers. she can't choose the patterns or colors though, she just orders sizes and styles of clothing. She actually does pretty well and makes a decent amount of money but it also helps when you know a lot of people who are interested in the product. Also, she doesn't necessarily need the money either since she's a stay at home mom and her husband makes more than enough to support them so it's pretty much just to have a little extra spending money. It may work out differently if you were to depend on it for income.

I actually disagree. I find llr to be one of the worse ones. Mainly because it has one of the largest start up inventories of all of them- it’s in the 5-6 thousand dollar range to get in on the ground floor-and those packages don’t even include leggings!
Here’s a pretty great article about it:
https://www.bloomberg.com/news/feat...-women-say-lularoe-s-legging-empire-is-a-scam
On top of that, their bbb rating is an f.

I’m not saying you can make money, I’m sure some people do and more power to them if they’ve found something that works for them! All I’m saying it’s that for most people it doesn’t.

 

[KaydeeKrunk]

My mom used to be in one, it was like Costco but online? I don't remember the name, but she started buying boxes of groceries and everything through them, including presents for me and my sister for X-Mas. I remember hearing her trying to recruit other people on the phone, and how it just gave her a discount on her orders, she wasn't even making anything. XD It lasted several months and she finally came to her senses, especially when the gross knock-off bulk foods started crowding all out cabinets cause we wouldn't eat them.

 

[EpicGamer12]

I actually disagree. I find llr to be one of the worse ones. Mainly because it has one of the largest start up inventories of all of them- it’s in the 5-6 thousand dollar range to get in on the ground floor-and those packages don’t even include leggings!
Here’s a pretty great article about it:
https://www.bloomberg.com/news/feat...-women-say-lularoe-s-legging-empire-is-a-scam
On top of that, their bbb rating is an f.

I’m not saying you can make money, I’m sure some people do and more power to them if they’ve found something that works for them! All I’m saying it’s that for most people it doesn’t.

Slave labour has never been so expensive.

 

[MapleSilver]

One of the worst investments you can make. Even if you do end up making money, I'm pretty sure they're illegal. Luckily I haven't been involved in any.

 

[nintendofan85]

Are you talking about companies like Vector Marketing?

 

[Bcat]

Are you talking about companies like Vector Marketing?

I've never heard of this one but it sounds like it fits the mlm model. so yeah

 

[kayleee]

Oh my god my best friend got involved in Amway a couple years ago and she wouldn’t believe that it was a pyramid scheme even though I was like you can’t be serious.... anyway she doesn’t try to sell it anymore cause she obviously spent a lot of money on it without making any and we never talk about it cause she knows I was right all along

 

[Alienfish]

okay wow no.. and i hope i never will because those sounds v fishy.

 

[Antonio]

I wouldn't mind running one. I would hate myself for it though.

 

[Livvy]

I've had many people try and get me into those. Rodan and Fields or whatever it's called most recently. Someone from my past was like hardcore trying to get me into it, and I had to tell her no like 5 times. My mom did cookie lee jewelry for a short period, and I would try and help her sell it, and ever since I knew I never wanted to be involved with those type of businesses. lol

 

[Kamzitty]

Are you talking about companies like Vector Marketing?

LOL this company tried to recruit both my bf and I last year.. they called him first and he went in for the interview. He told me it was complete bull and left in the middle of it after he realized you had to spend money on it and become a door to door salesman basically.
They called me a few months later while I was searching for a new job. The lady I spoke to was SUPER nice but very, very vague about it all, but made it seem amazing by saying things like how I'll make $17/hr and how it was an extremely easy job. Scheduled the interview and everything, but when they gave me the address I looked it up and realized it was the same place. Needless to say, I didn't show up for the interview lol.
They tend to prey on students and young adults, which I think is extremely messed up.

- - - Post Merge - - -

I don't know if It Works is considered a pyramid scheme or not?? It was really popular in FL a few years ago and my mom actually got involved in it after her friend kept bugging her to. My mom never made much money off it, but the friend was actually very successful and made nearly a fortune. She had a lot of kids and they were living in near poverty, but they made thousands of dollars and were able to buy a brand new house. She did the business with her husband and they were very persuasive, so I believe that is what led them to success.

 

[Lady Timpani]

Are you talking about companies like Vector Marketing?

Omg I hate Vector lol. The summer after I graduated high school a girl who was a year older than me tried to sell us some of their stuff and when we weren?t interested she started calling us basically every other day saying she ?really needed to talk to us? but never came out and said what she wanted. It was so weird; tbh I didn?t really know her super well, but she was in my marching band section, and I guess she just needed to get rid of her inventory.

Vector sends me a letter every year now, usually around summer break. I always toss them, but I feel bad for the people who get wrapped up in it. :/ On paper it looks really good, but it?s always like high schoolers or broke college students that they send stuff to, which is really messed up.